Kevin W. McCarthy

The Professor of On-Purpose

Marketing and Advertising

Do You Know Your Target Audience?

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Are your sales not where you would like them to be?

With many new clients, I often find that the failure to aim narrowly at a specific target audience is

  • confusing clients
  • extending the sales process
  • demanding on salespersons
  • losing them business

Is your marketing strategy and plan truly promoting your goods and services to the right people?

Time and again when interviewing business owners, salespersons, and marketers, I find their marketing message falls short because of confusion over a target market versus a target audience. This simple strategic marketing mistake costs dearly as the customer is left confused with messages that speak at them instead of to them. Confused customers are less inclined to buy.

Conducting a target audience analysis identifies specific needs, wants, hopes, and aspirations.

When you speak the customer’s language it offers assurance that you understand them and know how to solve their problem. Their comfort that you can identify their specific problem draws them to a conclusion that you are more appropriate and capable of caring for them.

When you’re perceived to be a less risky purchase, then the value proposition tilts in your favor. More sales can follow.

Communicating in generalities leaves customers guessing.

Here are two examples of ads from home heating and air conditioning companies in a local paper.

Ad #1 reads: “We’re the number one HVAC specialists. Call us for all your needs.”

Ad #2 reads: “Has your home air conditioning system just stopped? Call and be cool soon.”

Advertiser #2 has invested a bit more time that speaks to the specific needs of his target audience. It may appear a more expensive and narrow strategy, but the real test is not the number of calls, but the number of qualified calls. What do you think, will #2 beat #1?

Follow this simple On-Purpose Business Person rule of thumb:Market in your self interest.

Now that you’re thinking about the concept, who’s your target market and target audience? Want to talk it out? We’re here to help you.

How Are Your Marketing Strategy and Plans?

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Tactical terror is on the face of many a business person these days thanks to the fundamental shift in marketing due to the internet, especially as it relates to social media. Despite all the change, the core of marketing remains much the same as it has for the past 50 years. 

In today’s On-Purpose® Business Minute, may I introduce you to the importance of purpose in your marketing strategy and plans?

Purpose brings the power, spirit, or juice to the business model and marketing plan that engages employees, customers, and shareholders alike, yet each differently.

Before you design that new website or write that new brochure or ad, please give the fundamentals of great marketing the investment of your time and energy on the front end. It will save you a ton of time and money on the back end.

Having the fundamentals of marketing in place provides a higher probability that your goals will be met or exceeded.

  • Regardless of your company size, do you feel overwhelmed, confused, or frustrated with your present marketing strategy and plans?
  • Are you facing the tactical terror of chasing your tail and not getting the results you want?

Please place On-Purpose Partners  CMO Services on your mind to help you order, focus, build, and expand your business so it can go to the next level of performance. If you need help, please drop me an email at kwmccarthy@on-purpose.com.

As promised, here is a link to the Marketing Mix concept by Jerome McCarthy, the author of Basic Marketing (and who is not related to me).

Just Because We Can, Do We?

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Spread way too thin?

Does your “To Do List” look more like an “It’ll Never Get Done List”?

Welcome to my world where I have

  • more ideas than time
  • more projects than production capacity
  • a willing work ethic that admittedly tends toward workaholism

Who in your life is asking you this question: “Just because we can, do we?”

As a business advisor who develops deep strategy and designs businesses, I’ve seen far too many entrepreneurs and business owners confuse their capacity to perform as their reason to perform.

“We can do that!”

Having the ability to do something isn’t necessarily a sound reason for actually taking it on. I’ve been learning to be far more judicious about what I do. I also keep an “Ideas” file. Placing my scribbles and thinking into notes and notecards tends to discharge the energy or the immediacy and provides a cooling off period where perspective can be gained and better judgments made about what matters most.

Admittedly this is easier to write about than to live into.

The phone rang from a new business advisory client. I took the call. The business was in a revenue freefall.

  • Sales had dropped from $220 million to $70 million.
  • The business fundamentals had changed.
  • The unexpected death of the co-founders created chaos and confusion.

The young new family ownership was unprepared to lead or manage a business of this scale. Something had to change—fast!

The business had many functional strengths in operations, finance, facilities, brand, and such. Tremendous business capacity resided with relatively very sound infrastructure. They could do business, but could they remain in business?

Business is an inside-out reality.

What’s happening within the business is reflected outside the business. Customer engagement is important; however, it is leadership and management who create the means for that engagement to shrivel or thrive.

Marketing, in this case, had never been strategic. The deceased owner had a knack for it. Today, no one was at the helm with a feel for the business. In short, the company was in the midst of a very costly identity crisis that affected the internal culture and marketing. The customer experience suffered and very predictably, sales plummeted.

Working with the new owners and the hired president, we crafted a heartfelt purpose, vision, missions, and values. Then we partnered to develop a business plan. It rippled into a renewed marketing plan, sales plan, sales tools, sales training program, and field train-the-trainer program.

Let’s just say, probably a million dollars was invested in the entire project by the time we were ready to launch.

The relaunch date of the company was set. Company-wide months of thought, effort, and resources had been poured into this push to reinvigorate the business. A special convention was called to unveil the months of planning and preparations.

The week before the big relaunch, the company president attended a technology conference extolling the opportunities to be found in that industry, an unrelated business. The president, however, figured, “We have a loyal customer base and the capacity to attempt this. They’ll follow us.” This was true, but not wise.

Over my and his managers’ vigorous objections, he hurriedly hijacked the conference agenda, threw together a presentation of his vision, and launched a business concept (no support in place, mind you, to execute) to his 500-person sales force flown in and housed at the company’s expense.

Need I say more! The sales force wasn’t just confused, they were red-hot angry. It was as if a “bait and switch” had happened right before their eyes. The owner was playing around willy-nilly with their livelihoods.

The day after the “announcement,” the engagement with On-Purpose Business Advisors was mutually ended. The company could pursue what eventually proved to be—no big surprise—a very costly tangent that killed trust and momentum … and eventually put the company all but out of business.

Of course, this client had a host of people telling him not to do what he was doing. He just refused to listen and paid with his family’s business.

An idea alone, even a great idea, is never justification or rationalization for starting new initiatives, projects, or companies. In most cases, investing the same effort to launch something new is more wisely invested in updating, upgrading, and deepening what exists already.

Let the simplicity of the On-Purpose business approach guide you: Do More of What You Do Best More Profitably. A great exercise for new projects or businesses is to use The Service Model to design and develop your idea.

By capturing the essence of your thinking with a consistent approach, you will be more realistic.

Then file it away and give yourself a cooling off period. Later pull it out and evaluate it against the other opportunities, projects, and ideas you have.

Personal/Team Discussion: Show and read this On-Purpose Business Minute to your team and ask the following: Considering the many projects and opportunities on our plate, assess each against … Just because we can, do we?

The drive to make money and the capacity to produce are not predictors of customer acceptance. What lessons or stories do you have to share about leading the organization?

 

How Convincing Are You?

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When was the last time a salesperson convinced you to buy something? And how did that purchase work out for you?

Some salespeople see selling as a win–lose competitive game of point–counterpoint verbal combat. Be careful! It can work, but it is a highly skilled game that walks a fine line between providing the needed information and intimidating the buyer into a purchase—once!Sales is listening

Sales is learning what’s important to the customer and addressing it.

The best salespeople ask lots of questions; then they shut up and listen with both ears wide open.

For example, in technical sales where buyer and seller are highly qualified and knowledgeable, this approach can be an act of sizing up and iron sharpening iron. Generally, you’ll find that it is the buyer, not the seller, who initiates this more pressured approach.

Be careful, however, because the difference between healthy banter and an unhealthy, dominating buyer may be a very thin line. In the latter case, a humble, noncombative approach may serve you best. In other times, the better the banter, the better your chances. Skilled salespersons can turn it on or off depending upon the buyer’s style and by assessing the appropriateness of the situation and person.

In a sales situation where the seller knows more than the buyer and the buyer is communicating the need for input or insight, attempts by the seller to convince the buyer often result in a buyer turnoff. The buyer may sense that the seller is more interested in making the sale than consulting or serving them with integrity. In short, they don’t trust the salesperson. When that happens the transaction is disadvantaged.

One of the great challenges in selling today is the leveling effect of information from the internet. Most buyers can find tons of information, reviews, and competitive analysis on goods and services. Therefore, as a salesperson or business owner who is selling, counting on your strategic advantage as being more informed than the buyer is a dangerous proposition. In fact, you may be more knowledgeable and experienced than the buyer, but to try to argue or convince the buyer sets up a high-risk scenario for creating distrust. Humility, not hubris, is the better path.

One of your strategic advantages and value propositions is the diversity of clients and customers you’ve worked with. In other words, you see patterns of use and abuse. You’re able to borrow from the experience of other customers and advise clients as to likely scenarios they may encounter and may not have anticipated.

Those involved in selling often find themselves in a really tough place.

From the strength of their knowledge and conviction, they perceive they know exactly what their client or customer needs, yet the client isn’t buying. Your natural inclination may be to lean into the act of convincing them with an even more reasoned set of facts, benefits, and features why this is the right purchase for them. Just how convincing do you think you’ll really be?

When that urge to tell overtakes your tongue consider just the opposite approach. Ask more questions. Ideally, you have what I call a “patterned conversation” in which you have a strong sense of what needs to happen (a pattern of questions that leads to an informative and insightful exchange) but not a preconceived notion of where it may lead.

Ultimately, buyers are looking to advance their larger goal.

If you don’t know the larger goal then you’re not really listening and learning what’s at stake.

Getting into a “convincing-fest” is rarely your best approach for earning the relationship and sale. It is often an indication of a salesperson who is taking shortcuts or is using dominance or personality or style to pressure someone into doing something they don’t want. This manipulation, however, can work.

Alternatively, there’s a time when a customer needs to be led to their decision. Leveraging your experience and capacity to anticipate their needs, you’ll take them along the path of discovery versus jumping to the final destination. It takes more time, but it often makes for a better solution for the client because you, too, will learn some things along the way and be able to provide a more valuable end result. Truth be told, you can make a sale or you can build a relationship. Ideally, you do both.

Do You Have A Business Blunder To Share?

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Image of baby. Putting your foot in your mouth is only cute with babies!
“This sucks!”

Now and then we’re inclined to suffer by inserting our foot in our mouth with negative consequences! It is cute when a baby does it, but not so pretty when we’re adults. In the world of business, these gaffes can cost you a sale, a client, an account, a job, or—heaven forbid—your business.

Hopefully, however, you can look back with a sense of humor as I can in this On-Purpose Business Minute.

Some blunders can be tragic, and it really isn’t a laughing matter.

Regardless, every blunder holds a lesson (or two or three). Some may even hold blessings when we search long and hard enough and the healing is complete.

As you’ll see in my video, time tends to lend perspective and insight that pays dividends later in our life and career. After watching this On-Purpose Business Minute, please share your business blunder and the lesson(s) you learned. You will help us all by not being off-purpose.

Sales Prospecting or Farming?

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Sales prospecting and farming represent two modes of selling.

Be clear about which one works and works for you.

Over the years, clients have engaged On-Purpose Partners to assess and design their sales architecture, often with sales prospecting or farmingOn-Purpose® being foundational content. Such engagements demand a blend of

  • strategy
  • psychology
  • marketing
  • selling
  • curriculum development
  • business
  • and more

One of the first design decisions to assess is if the client’s business, mindset, and preference is for building a prospecting or a farming sales approach.

Many other company decisions and investments hinge on this simple differentiation.

As a keynote speaker to sales organizations at conferences and conventions, I’ve learned to psych out their leanings early. Whether it be an insurance, real estate, or direct sales organization, there are similarities and differences in their cultures and approaches; yet these two generalized worldviews on selling remain staples of the selling process.

Corporate executives set the tone but often a product or service defines the sales approach. Generally, if a company is in manufacturing or is technology oriented, they tend to favor the prospecting approach mentioned in this On-Purpose Business Minute. Customers are part of the “human resources” supply chain of logistics and transactions. Here people are deployed to meet business objectives by digging out customers.

Company executives who favor the farming approach, however, tend to focus more on cultivating relationships.

This longer-term view of people sees a long tail of repeat sales and referrals in the context of the lifelong value of a customer. It affects commitment and investment in planning, people, operations and, ultimately, customer service standards and training.

Salespeople as farmers or prospectors are typically engaged in very similar activities of making sales calls, gathering information, preparing presentations, and closing deals. Astute salespeople readily assess the best approach for a particular book of business. If you find yourself scratching your head wondering what the higher-ups are thinking, then there is a good chance they are (or you are) oblivious to the culture they’re creating in the field. They’re prospecting for immediate nuggets of sales while you’re growing a crop of relationships and caring for a soil of the relationship … or vice versa.

Be aware of which approach is best suited to the company, customers, and, frankly, your personal style that plays into your definition of success.

Years ago, a friend came to me ready to pull his hair out by the roots. He loved where he worked as an admissions representative at a private vocational college. The problem was he is a farmer and he was being measured as a prospector. Every phone call, email, and piece of mail was measured and accrued to his measurement system.

Together we designed a simple tool to engage student candidates into a conversation instead of an information session. At great risk to his metrics, his call volume went down, his mailings decreased, and his number of “contacts” declined. The first month, his boss was all over him for non-performance. However, by the second month, his admissions soared to the number 3 spot of all reps—an achievement he had never before attained. Within 3 months, he was leading all reps and out-distancing them. Soon two reps approached him and asked what he was doing differently. Within a month all three of them held the top 3 positions.

They had discovered farming versus prospecting!

This story isn’t to propose that prospecting is bad. On the contrary, it is to say that the culture and the sales culture didn’t match and the results were impoverished by comparison to a proper match.

By the way, the story gets even better. In time, the leadership altered the system to reflect a farming approach that was people-centric. Under the “prospecting” approach, student turnover (withdrawals from the college) was very high. With the “farming” approach, admitted students tended to stay in place. This was an unexpected bonus, but an intuitive result.

The point of this On-Purpose Business Minute for the executives, VPs of Marketing & Sales, and Sales Managers is to assess your industry, company, and culture. Decide which approach is best suited to creating the customer experience you wish to deliver. Armed with this information, evaluate your company language, alignment, and operations to see if you’re on-purpose or not.

Sales prospecting or farming? Now you’re a bit more informed to make wiser decisions.

Be On-Purpose!
Kevin

Why Is My Business Struggling?

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Fortune 1000 company CEOs and small start-up business owners who have yet to make $1,000 often share the same problem—a business struggling to succeed. Economic conditions can definitely have an effect.

Many of the business challenges I see, however, are self-inflicted!

Business problems due to lack of sales revenue are most often addressed at the surface level—”We need a new website, lower prices, more salespeople, and so forth.” Sales and marketing are obvious places to look by the entrepreneur or even seasoned CEO.

Business solutions like these are where hordes of consultants and advisors earn their fees. Most often they are well earned and justified.

But wait—there’s more!

My experience as a business advisor for CEOs of multi-billion dollar companies and one person start-ups tells me that these tactical plans and approaches to problem businesses are often futile. It leaves the business struggling and focused on the wrong activities, even if well intended.

The culprit of many a business challenge lies below the surface.

If the basic business design, model, and plan have flaws then the entire business is off the mark. The larger the business, the more it lives within the corporate culture—for better or worse. Even a small defect at the core of the business can be expensive.

What To Do

  1. Watch this video on The On-Purpose Business Plan. Invest 9 minutes right now. This will help you find undiscovered wealth within your business. As you’re watching ask yourself if your business has this kind of thinking and structure in place and developed. Better yet, ask yourself the value of it if you did have it in place. When you build your business on your purpose, then you’re capable of offering a full-bodied expression of your business instead of the typically tactical and anemic offerings of today.

If something is missing in your business … it is probably here!

    2. Do This: STOP! = Start Thinking On-Purpose! 

How to do that: Try this simple exercise. Write down your “truths” about your business. This could include your assumptions about your customers, the market conditions, what it takes to sell, the benefits and features of your product or service, costs, the quality of your team or delivery … you get the idea. Jot down what you hold as a reality or truth in your business. These are your assumptions and concepts.

Next, take your list to two or three people outside your industry and ask them to review the list and to tell you their take on your observations plus their thoughts and perceptions. Avoid defensiveness. Wear your R&D and market research hat and listen—don’t tell—and just ask.

Finally, interview a few customers or targeted prospects to learn if your truths are reality or simply impressions that constrain your business development and growth. Ponder it and then adjust accordingly!

Have You Had Your Profit Epiphany?

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Profit-making has a bad rap.

Too often we associate profit with greed.

Truth be told, greed is an attitude of the heart that is often revealed in business but isn’t inherent to being in business.

If your heart’s desire is to truly be of service to others, then greed is likely not going to be your problem. Your challenge is just the opposite—you run so far from the appearances of greed that you overdeliver and undercharge so often that your business is hanging by a thread. Check your mindset and see if I’m right!

This On-Purpose Business Minute may be just the message you need to hear to awaken you that it isn’t your marketing, sales force, or operations that needs the adjustment—it is your internal posture about profits in need of repair.